West Cobar Metals has identified five high-priority copper-gold targets in Western Australia’s Fraser Range and secured a farm-in deal with Minrex Resources to fund upcoming drilling. Positive metallurgical results at its Bulla Park copper-antimony project and a $450,000 placement underpin its exploration momentum.
- Five high-priority IOCG and Broken Hill Type targets identified in Fraser Range, WA
- Farm-in option agreement with Minrex Resources to fund $500,000 in drilling milestones
- Positive metallurgical test results at Bulla Park copper-antimony-silver deposit, NSW
- Acquisition and drill planning underway at Mystique Gold Project, WA
- Two-tranche placement raised $450,000, with second tranche pending shareholder approval
Exploration Momentum Builds in Fraser Range
West Cobar Metals Limited (ASX: WC1) has made significant strides in its copper and gold exploration efforts during the March 2025 quarter, particularly within its extensive tenement holdings in Western Australia’s Fraser Range. The company identified five high-priority targets for Iron Oxide Copper-Gold (IOCG) and Broken Hill Type (BHT) mineralisation, a notable development given the region’s structural similarities to prolific mineral provinces such as the Gawler Craton.
These targets emerged from a comprehensive reassessment of geophysical data, including aeromagnetic, gravity, and electromagnetic surveys, despite the challenges posed by a thin transported cover layer that has historically limited surface geochemical analysis. The targets are strategically located in the Biranup Zone, a structural extension of the Fraser Zone, which hosts significant nickel deposits and shares geological affinities with IOCG systems.
Farm-In Agreement with Minrex Resources
To accelerate exploration, West Cobar executed a farm-in option agreement with Minrex Resources Limited. Under this agreement, Minrex will fund up to $500,000 in exploration activities through milestone payments tied to heritage surveys, drilling approvals, rig mobilisation, and drilling completion. This partnership not only mitigates West Cobar’s upfront capital requirements but also validates the prospectivity of the Fraser Range targets.
Drilling is planned to commence following receipt of necessary regulatory approvals, with the company also securing co-funding through the Western Australian government’s Exploration Incentive Scheme, which offers a refund of up to $156,000 for drilling expenditures.
Advancing Gold Exploration at Mystique Project
In parallel, West Cobar is progressing its gold exploration ambitions in Western Australia through the acquisition of the Mystique Project from IGO Limited. The project encompasses prime ground with potential for both saprolite and bedrock-hosted gold mineralisation. Drill planning is underway to test key prospects, Themis South and Torquata, which have shown encouraging gold anomalism in transported cover.
Although a conditional agreement to acquire additional tenements known as the Thunderstorm Project was not pursued due to a joint venture partner’s pre-emptive acquisition, West Cobar remains focused on unlocking value within its existing Mystique tenure.
Positive Metallurgical Progress at Bulla Park
Back on the east coast, the Bulla Park copper-antimony-silver deposit in New South Wales continues to deliver promising results. Metallurgical testwork on representative drill core samples has demonstrated high recoveries of copper, antimony, and silver through flotation and alkaline leaching processes. The flotation concentrate achieved over 93% recovery of antimony and copper, with significant silver credits, while the leach process effectively extracted antimony into a saleable product stream.
These results support the preparation of a maiden Mineral Resource Estimate (MRE) and Exploration Target, with the potential for higher grades and shallower mineralisation to enhance project economics amid favourable market conditions for antimony and copper.
Capital Raising and Corporate Discipline
To fund its exploration activities, West Cobar successfully raised $450,000 through a two-tranche placement at $0.016 per share, reflecting a modest discount to recent trading prices. The first tranche raised approximately $52,000 and was completed in March, while the second tranche, accounting for nearly $400,000, awaits shareholder approval at the upcoming general meeting scheduled for 5 May 2025.
The company has also taken steps to conserve cash by reducing corporate overheads, including directors foregoing fees and the managing director accepting a reduced salary. Despite a one-off $410,000 stamp duty payment related to a prior acquisition, West Cobar ended the quarter with $158,000 in cash and no debt, maintaining a cautious but proactive financial posture.
Looking ahead, the company is evaluating additional gold and copper projects in Australia, signaling an intent to expand its portfolio strategically while advancing its current assets.
Bottom Line?
West Cobar’s upcoming drilling and shareholder vote will be pivotal in translating exploration potential into tangible value.
Questions in the middle?
- When will regulatory approvals be secured to commence drilling at Fraser Range?
- What are the expected timelines and outcomes for the maiden resource estimate at Bulla Park?
- How might the shareholder vote on the placement impact West Cobar’s near-term funding and exploration plans?